VISION
'Serving the under-served’, ‘addressing the bottom of the pyramid’,
‘inclusive financing’ are all phrases that have become commonplace in the corporate
world today. Whether it is the Chit Fund business, or Transport & Equipment
Financing, or the consumer Finance business or even the huge deposit customer base
of Shriram , over 90% of the 9.5 million customers of the group come under the purview
of the under-served.
GOING BEYOND SOUTH
Chit Funds in 1974 and Transportation Finance in 1978 were all
started in South India; Shriram Group’s business strategy of providing a competitive
platform to capture the savings and borrowing wallets of the middle and lower income
groups found immediate acceptance in the southern states and enabled the group to
successfully establish itself in every nook and corner of South India. As Shriram
became a household name in the four southern states, the group ventured into the
other three regions through their Transportation Business where again the target
market was the under-served owner-operator and customers of used vehicles. By institutionalising
a direct connect with the end customer and by taking complete ownership of every
key business process, the Shriram branch was not only in full control of the customer
fulfillment process but was also in a unique position to establish a great and sustainable
relationship with customer. This approach created a huge entry banner to most other
players (both Indian & MNC’s) who made several futile attempts to enter the
segment. The unique and well-executed business model attracted several investors-both
strategic and portfolio- and enabled the transportation business of the group to
grow by leaps and bounds.
DIVERSIFICATION INTO INSURANCE
Shriram’s stupendous record in building teams at the branch
level and providing an environment for these teams to excel was effectively complemented
by a very large number of agents who supported the branches on customer acquisition
for retail deposits. With over 25,000 active agents, Insurance was a logical diversification
as this sector opened up to private players. While Shriram was amongst the last
movers into the Life and General Insurance industry the group’s established track
record of delivering value to the under-served through a low-cost, relationship-based
model enabled them to create history by being the only General Insurance company
to be profitable in its first full year of operation and one of the two Life Insurance
companies to be profitable in the first year of operation. Sanlam, the largest insurer
in South Africa and Shriram’s Insurance partner, is working closely with the group
to take the Insurance Businesses to the next level in the coming years.
GOING FORWARD
With an enviable growth record of 40% CAGR in the last 7 years,
an excellent array of happy investors, a brand that resonates trust and reliability,
an employee strength of over 45,000 with single digit attrition, an ever-growing
customer base of 9.5 million strong and a successful low-cost delivery model, Shriram
is today a Financial Services conglomerate poised for attaining greater heights
in the near future. The group realizes that they have to continue to do things differently
to sustain the growth levels and their exemplary service to their target market
across businesses. A strong think-tank has been created at Shriram Capital at the
Holding Company level to oversee and provide key inputs to the operating CEOs in
critical areas of Synergy Creation, Risk Management and Leadership development.
So much going for the group internally and in the market place, Shriram has become
every Shareholder’s pride and every Competitor’s envy!
